Correlation Between Carlyle Secured and Brightsphere Investment
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Brightsphere Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Carlyle Secured and Brightsphere Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Secured Lending and Brightsphere Investment Group, you can compare the effects of market volatilities on Carlyle Secured and Brightsphere Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Carlyle Secured with a short position of Brightsphere Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Brightsphere Investment.
Diversification Opportunities for Carlyle Secured and Brightsphere Investment
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carlyle and Brightsphere is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Brightsphere Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brightsphere Investment and Carlyle Secured is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Carlyle Secured Lending are associated (or correlated) with Brightsphere Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brightsphere Investment has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Brightsphere Investment go up and down completely randomly.
Pair Corralation between Carlyle Secured and Brightsphere Investment
Given the investment horizon of 90 days Carlyle Secured is expected to generate 1.19 times less return on investment than Brightsphere Investment. But when comparing it to its historical volatility, Carlyle Secured Lending is 1.56 times less risky than Brightsphere Investment. It trades about 0.08 of its potential returns per unit of risk. Brightsphere Investment Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,958 in Brightsphere Investment Group on August 28, 2024 and sell it today you would earn a total of 1,142 from holding Brightsphere Investment Group or generate 58.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Brightsphere Investment Group
Performance |
| Timeline |
| Carlyle Secured Lending |
| Brightsphere Investment |
Carlyle Secured and Brightsphere Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Brightsphere Investment
The main advantage of trading using opposite Carlyle Secured and Brightsphere Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Brightsphere Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brightsphere Investment will offset losses from the drop in Brightsphere Investment's long position.| Carlyle Secured vs. PowerUp Acquisition Corp | Carlyle Secured vs. Aurora Innovation | Carlyle Secured vs. HUMANA INC | Carlyle Secured vs. Aquagold International |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |